Finland – first green hydrogen plant starts commercial production

Finland – first green hydrogen plant starts commercial production

HELSINKI (Reuters) – Finnish company P2X Solutions has started commercial green hydrogen production at its facility that is first-of-a-kind in Finland and one of the first in Europe, it said on Wednesday.

A number of European companies, such as oil majors British BP and Spanish Repsol or Norway’s aluminium and energy company Norsk Hydro [NHY.OL], have either cancelled or put their green hydrogen projects on hold due to spiralling costs and regulatory hurdles among other reasons.

P2X Solutions’ chief executive Herkko Plit told Reuters,

We are among the first in Europe to start production of this scale,

P2X, majority-owned by Swiss energy group Alpiq since last year, said its new production plant in Harjavalta, Western Finland, has a production capacity of 20 MW and will also include a methanation facility that will launch its operations at a later stage.

It uses renewable electricity, such as wind power that is abundantly available in Finland, which enables it to call the hydrogen it produces “green.”

The facility received a 26-million euro investment grant from the Finnish Ministry of economic affairs and employment, as well as a 10 million euro capital loan from the Finnish Climate Fund, Plit said.

Plit said the investment decision had been made prior to the start of Russia’s invasion of Ukraine in 2022, which caused inflation to soar and demand for fossil fuels to increase again, hampering market development for clean fuels, such as green hydrogen.

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